Procurement Authority revises K2m procurement threshold for local authorities

Procurement Authority revises K2m procurement threshold for local authorities

By BUUMBA CHIMBULU 

THE Zambia Public Procurement Authority (ZPPA) has with immediate effect revised to unlimited threshold the K2 million for all local authorities which was restricted at that price.

This follows the increased allocation in the Constituency Development Fund (CDF) and the developments in the decentralisation programme.

It is envisaged that there will be a substantial increase in the budgets for the procurements of goods, works and services, according to the ZPPA Public Relations Officer, Nchimunya Muganya.

Ms Muganya explained that the upgrade of the threshold entailed that Councils which  were in the restricted category of circular No. 1 of 2021 would no longer be required to submit any procurement requirements to the Provincial Administration Procurement Committee for processing.

ZPPA, she said in a statement, was therefore urging all local authorities to ensure full compliance with the Public Procurement Act No. 8 of 2020 and Public Procurement Regulations, 2011.

“The Authority will not hesitate to impose applicable administrative and legal sanctions on the procuring entities or office holders that will be found wanting.

“To this effect, ZPPA has issued Circular No.2 of 2022 to all Permanent Secretaries, All Provincial Permanent Secretaries, all Town Clerks and Council Secretaries of local authorities revising the threshold from K2, 000,000.00 to unlimited category,” Ms Muganya said.

She stated that in a ZPPA circular No. 1 of 2021, ZPPA guided that all Municipal and Town Councils who had a revised restricted threshold of K2 million and that all procurements that exceeded the threshold should be processed by the Provincial Administration Procurement Committees.

Ms Muganya stated that the Authority would continue to undertake compliance and capacity assessments to monitor compliance with the Public Procurement Act No. 8 of 2020 and Public Procurement Regulations, 2011.

“In an effort to enhance efficiency and timely delivery of goods, works and services under CDF projects, the Authority has with immediate effect amended Circular No.1 of 2021 and has upgraded all local authorities (City, Municipal and Town Councils) Procurement Committees to unlimited threshold through circular No.2 of 2022,” she said.